OPEN MARKET FOR BILLS

New Zealand Herald, Volume LXXI, Issue 21962, 20 November 1934, Page 5

OPEN MARKET FOR BILLS

AUSTRALIAN SUGGESTIONS MATTER UNDER CONSIDERATION The question of establishing an open market for bills is being considered in Australia, and the Loan Council has deferred the matter to enable further inquiries to be made by Treasury officials. Meanwhile, the Commonwealth Bank Board, which is devoting attention to the subject, is not unanimous as to whether an open market is advisable. It is understood that opposition is coming from certain members who believe that such a market would lead to further borrowing under political pressure. There is a general agreement that an open market under Government control would involve risks to the currency that might easily become embarrassing. A safeguard against these risks is suggested by the management of lIh; open market for Treasury bills by the Commonwealth Bank. These Treasury bills, as the basis of the market, would bo offered for tender periodically, and, with sufficient competition among those seeking short-term investments, the rate would be kept down. On the other hand, the trading banks would suffer a depletion of their deposits, and might feel inclined to increase deposit rates in competition with Treasury bill rates, thus producing an effect opposite to that desired by the Treasurers. It is believed that, should the Commonwealth Bank have the exclusive right to fi.v the amount of Treasury bills to bo tendered for, its policy would be gradually to reduce the total to proportions which would remove the present danger to the currency. AUSTRALIAN EXCHANGES YESTERDAY'S BUSINESS (Received November 19, 9.-5 p.m.) SYDNEY, Nov. 19 On tho Sydney Stock Exchange today there was a fairly steady tone throughout, and company shares displayed a tendency to harden. This morning's sales included:—Commonwealth 4 per cent bonds, 1938, £lO7 ss; 1941, £lO6 15s; 1944, £lO7 17s 6d; 1953, £ll2 2s 6d; 1957, £llO 17s 6d; 1959, £lll ss; 1961, £lll 15s. Commercial bank of Sydney, £l7 18s; Associated News, 25s 6d; Broken Hill Proprietary, 51s 6d; Dunlop-Perdriati, 20s; Goldsbrough-Mort, 31s; Howard Smith, 16s 6d; James Stedman, 16s 3d. Later sales included: —Bank of New South Wales, £33; Commercial Bank of Sydney, £l7 18s; Colonial Sugar, £76 10s; Australian Provincial Assurance, 10s lid; Associated News, 25s 6d; ditto, preference, 25s 3d; British Tobacco, 41s 6d; Tooth's Brewery, 51s; Toohey's Brewery, 295; Australian Glass, 61s 6d; Goldsbrough-Mort, 31s; Henry Jones, 36s 6d; David Jones, 425; Anthony Hordern, 17s 4sd; North Broken Hill, £5; Rawang Tin, 7s 9d; Placer Development, £23 10s. Melbourne sales included:—National Bank (£lO paid), £l2 12s; Electrolytic Zinc, 255; Herald ajid Weekly Times, 58s; Dunlop-Perdriau, 20s; Mount Lyell, 17s 9d. FOREIGN EXCHANGES DOLLAR AND THE FRANC British Wireless RUGBY, Nov. 17 The following rates on foreign exchanges are current, compared with the cabled quotations on November 16 and

'Sellers. NEW ZEALAND MONEY ABROAD Current dollar exchanges, as quoted by the New Zealand banks, are as under:— Dollars to £1 sterling Buyers Sellers United States .. 5.09 4.89 Canada .. . . 5.97 5.77 Following are the latest rates for purchases and sales of foreign exchange quoted by the Bank of New South Wales, Auckland. They are subject to alteration without notice:— T.T. On Demand

The cost in New Zealand currency of the pound sterling, and of the principal foreign units, on the latest quotations, is as follows: Present Price Par sd s d Australia, pound .. 19 10,81. 20 0.00 London, pound . . . . 21 10.50 20 0.00 New York, dollar .. 5 1.0(5 4 1.31 Montreal, dollar .. fi 2.<54 4 1.31 Paris, franc .. .. 0 3.94 0 1.98 Berlin, reichmark .. 2 0.03 0 11.74 Copenhagen, kroito .. 1 1.33 1 1.22 Yokohama, yen .. 1 5.41 2 0.58 CUSTOMS EXCHANGE RATES Rates of exchange ruling at the announced dates of departure of the vessels named are shown in the following table. They are subject to con- • formation by the Customs Department when the exact time of departure is learned on arrival of the vessels in New Zealand, finally declared rates being marked : Port Campbell, America., dollars .. 4.981 Golden Coast, America, dollars .. 4.97} Melbourne Maru, Japan, yen .. 14d Aorangi, Canada, dollars .. .. 4.874 Hauraki, America, dollars . . .. 4.985 Canadian Highlander, Canada, dol. 4.87 Monterey, America, dollars .. .. 4.99J CALL AND DIVIDEND LIST Dividends— . Due N.Z. Perp. Forests —int., 4 p.m. To-day Broken Hill Pty.—half-yearly, If ' a share To-morrow Wfstport Coal—final, Od a share Nov. 2G Wilsons Cement—int., 7Jd a share Nov. 28 Nat. Bank A'asia—int., £5 and £lO paid, 2i p.c Nov. 23 Dalgety and Co.—final. 2i p.o. (sterling) Nov. 28 Lfeyland O'Brien—s p.c Nov. 28 Farmers' Trading—A and B pref., 5 3-5 p.c. Nov. 30 E.S. and A. Bank—final, 2i p.o. (sterling) tax free .. .. Nov. Aust. Glass—int., pref., 4i p. 0.; ord., 5 p.c Deo. 1 Henry Jones Co-op.—final. Is a share Deo. 1 Bank N.Z.—int., ord.. Is a sharo; D pref., 35 p.c. .. .. Deo. 8 North Broken Hill—la (id a share Dec. 12 Broken Hill South—ls fid a share Dec. 15 Kauri Timber—3 p.c. p.a. .. Dec. Mataki—int.. Id a share .. .. Dec. Bulolo—int., 90 cents .. .. Jan. 10 Placer Development—int.. 1 dollar 20 cents Jan. 10 Call— , , Golconda—eighth, Id a share .. Dec. 11 Alexander—Gd a share, making 15s paid .. .. ... •.

par: — Nov. 17 Nov. 16 Par. Montreal, dol. .. 4.87 . 4.87% 4.806 Now York, dol. . 4.9!) 4.99', 2 4.866 Paris, fr. 75% 75"/ la 124.21 Brussels, belga . 21.41 21.43 35.00 Geneva, fr. 15.38 15.39 25.22 Amsterdam,' 11. . 7.39 7.39'/, 12.10 Milan, lire 58-% 5S 7 /i„ 92.46 Berlin, r.m. 12.42 12.43 20.43 Stockholm, kr. . 19.39'/ a 19.39% 18.159 Copenhagen, kr. , 22.40 22.40 18.159 Oslo, kr. 19.90/a 19.90% 18.159 Vienna, sch. 27 27 34.585 Prague, kr. 119 7 /. 119% 164.25 Helsingfors, mark 226% 226% 129.23 Madrid, pes. 30°/i n •W 1 °/32 25.221 Lisbon, escu. .. no% 110% 110 Athens, dr. 523* 523* 375.00 Bucharest, lei. . . 497 497 813.6 Rio de Janeiro, mil. 4'Ad* 4% d* 5.899d Buenos Aires, dol. 36% d * 36%d* 47.619d Montevideo, dol. 39 d* 39d* 51 d Bombay, rupee . 18'/<sd 18Vii.d 18d Shanghai, dol. . l6 r /<d IfiVid Hongkong, dol. . 20V, 6 d 20'/ l6 d Yokohama, yen . 14d 34d 24.5Pd Batavia, fl. 7.38 7.38 12.10 Belgrade, din. . . — 220 270.31

To £1 N.Z. Currency Selling Buying Seliins France, fr. 60.24 GJ .84 60.29 Noumea, fr. 59.49 62.89 59.54 Papeete, fr. 59.49 62.89 59.54 Belgium, belga . 16.889 17.689 16.90 Germany, r.m. . 9.771 — 9.776 Italy, lire . . 46.22 .— 46.26 Switzerland, fr. . 12.170 12.651 12.18 Holland, fl. 5.822 6.122 5.826 Java, fl. 5.814 6.089 5.818 N.Z. pence to Japan, yen \7-Y 32 — — Shanghai, dol. 20 2 % a 19 is / 3a 20 27 / a India, rupee 22% 22%, 22% „ Ceylon, rupe-e oov 22 % a '-2%n Hongkong, dol. . 25'% a 2 4%, 25"/, Singapore, dol. . 35% 34 /'is SS'J'le